/Chain_of_Custody_Certifcation_C._Korol_6

Chain-of-Custody From Forest to Consumer

March 30, 2011

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Chain of Custody Tracking wood from the forest.... .... to the consumer

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Who Needs Chain of Custody Certification?

Anyone who processes, transforms, manufactures, converts or distributes products carrying an FSC logo or FSC claim must be Chain of Custody (CoC) Certified.

CoC follows ownership of the material

Companies that do no need CoC certification: • transport • Subcontractors for finishing • sales agents

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The Basics of the CoC Process (FSC-STD-40-004 V2)

   

Verify supplier’s FSC status Verify material upon receipt Storage, segregation, tracking of FSC material System for making FSC claims: • transfer • percentage • credit

 Passing on the FSC claim (invoices, shipping documents)  Labelling: on-product, off-product

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Various types of inputs can be used: FSC-certified inputs

FSC Mixed

FSC Pure

FSC Recycled

Non-FSC inputs Controlled material FSC Controlled Wood Reclaimed material

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Making FSC Claims: Transfer System • • • • • • •

Raw material claim (or lowest claim) is carried forward Segregation is required Used for FSC Pure claims Used for FSC Recycled 100% claims Shall be used for trading finished products Shall be used for organizations without sites Typical for –Brokers, traders –Distributors, wholesalers –Printers, paper merchants

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Inputs of the same material category: Input Material Category

FSC Claim

FSC Pure

FSC Pure

FSC Mixed Credit

FSC Mixed Credit

FSC Recycled 85%

FSC Recycled 85%

Inputs from different material categories: Input Material Category

FSC Claim

FSC Pure + FSC Mixed 70%

FSC Mixed 70%

FSC Recycled 100% + post-consumer

FSC Recycled 100%

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Making FSC Claims: Percentage System Inputs of different material categories are transformed or combined with an FSC percentage claim calculated based on input volumes.

Input Material Categories

FSC Claim

FSC Pure + controlled material

FSC Mixed X%

FSC Mixed + FSC Mixed

FSC Mixed X%

FSC Recycled + Pre-consumer

FSC Recycled X%

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Making FSC Claims: Credit System Inputs of different material categories are transformed (or combined) for an FSC credit claim.

Input Material Categories

FSC Claim

FSC Pure + controlled material

FSC Mixed Credit

FSC Mixed + Post-consumer

FSC Mixed Credit

Post-consumer + Pre-consumer

FSC Recycled Credit

• No segregation required once received (except uncontrolled) • Most sawmills on this system • Requires set up and maintenance of FSC Credit Account

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To earn credit To spend credit

BUY FSC (&/or PCR) raw material

SELL FSC products

... However there are some banking rules ...

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FSC Credit = Input X C.F. Sample: Input = 40 cbm of logs

Where:

C.F. = 0.5

FSC Credit = FSC credit earned

(0.5 fbm lumber produced from 1 fbm roundwood)

Input = Amount of purchased material

FSC Credit = 40(0.5) = 20 fbm

C.F. = conversion factor for input to output

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Illustration of a Credit Account Month

FSC Total

July

20

Aug

15

13.5

Sept

25

22.5

Inputs

FSC C.F. (0.9) 18 (20X0.9)

Total FSC Credit

FSC Sales

18

10

21.5 (13.5+8)

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Balance 8 (18-10)

20

1.5

5

19

New credit + previous balance

New Credit Balance = [(Inputs X C.F.) + Previous Balance] – FSC Sales

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Supplementary Components • • • • • •

Outsourcing Minor components Controlled wood (FSC-STD-40-005) Reclaimed material (FSC-STD-40-007) Multi-site certificates (FSC-STD-40-003) Group certificates (FSC-POL-40-002)

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What if not all the wood I buy is FSC-certified?

Controlled Wood Non-FSC certified materials:

• that avoid wood from 5 unacceptable categories • where the forest origin is known

FSC Controlled Wood • • • •

non-FSC material already verified by an FSC-certified supplier as being ‘controlled’ ie. district of origin verified and risk assessment conducted sold by an FSC-certified company with ‘FSC Controlled Wood’ claim

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Controlled Wood avoids: 1. Illegally harvested wood;

2. Wood harvested in violation of traditional and civil rights; 3. Wood harvested in forests where high conservation values are threatened by management activities; 4. Wood harvested in forests being converted to plantations or non-forest use; 5. Wood from forests in which genetically modified trees are planted.

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The Basics of the Controlled Wood Process  Verify ‘district of origin’ of non-FSC material  Conduct risk assessment for district of origin • low risk - wood considered ‘controlled material’ • not low risk - wood considered ‘uncontrolled’ material

 Track controlled wood for use in FSC product groups  System for controlling FSC claims: • percentage - must segregate FSC vs. controlled wood • credit - no segregation req’d

 Can sell non-certified wood with ‘FSC Controlled Wood’ claim (to FSC-certified customers only)

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The Certification Process Submit an application to SmartWood Budget/Proposal prepared Signed service agreement Prepare documented control system & forms Conduct training with staff Assessment with SmartWood auditor Report with findings (certificate recommended?)

Certificate issued 17

Questions?

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